diff --git a/.travis.yml b/.travis.yml
index ad8bda712c..6dcf5c1833 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -122,12 +122,11 @@ matrix:
           - '${HOME}/.sonar/cache'
 
     - name: "ESP8266 Build Test"
-      cache: ccache
       install: make -f ./targets/esp8266/Makefile.travis install-noapt
       script: make -f ./targets/esp8266/Makefile.travis script
       addons:
         apt:
-          packages: [gperf, texinfo, wget]
+          packages: [wget]
 
     - name: "Mbed OS 5/K64F Build Test"
       addons:
diff --git a/targets/esp8266/Makefile b/targets/esp8266/Makefile
index a87fb43460..915f6be726 100644
--- a/targets/esp8266/Makefile
+++ b/targets/esp8266/Makefile
@@ -50,7 +50,7 @@ LDDIR = $(SDK_PATH)/ld
 # 	so we use it instead of the original one from SDK.
 JERRY_LD_FILE = $(CURDIR)/ld/eagle.app.v6.ld
 
-CCFLAGS += -Os
+CCFLAGS += -Os -std=c99
 #CCFLAGS += -O0
 
 TARGET_LDFLAGS =					\
@@ -91,7 +91,6 @@ LINKFLAGS_eagle.app.v6 =				\
 	-llwip						\
 	-ldriver					\
 	-lmain						\
-	-lmesh						\
 	-lmirom						\
 	-lnet80211					\
 	-lnopoll					\
diff --git a/targets/esp8266/Makefile.esp8266 b/targets/esp8266/Makefile.esp8266
index 34dcf71ebe..89f86997c9 100644
--- a/targets/esp8266/Makefile.esp8266
+++ b/targets/esp8266/Makefile.esp8266
@@ -18,7 +18,7 @@ BUILD_DIR  = build/obj-esp8266
 COPYTARGET = targets/esp8266/libs
 USBDEVICE  ?= /dev/ttyUSB0
 JERRYHEAP  ?= 20
-ESPTOOL    ?= /opt/Espressif/esptool-py/esptool.py
+ESPTOOL    ?= $(ESPTOOL_PATH)/esptool.py
 
 # compile flags
 ESP_CFLAGS := -D__TARGET_ESP8266 -D__attr_always_inline___=
diff --git a/targets/esp8266/Makefile.travis b/targets/esp8266/Makefile.travis
index aa182c118b..16787222d4 100644
--- a/targets/esp8266/Makefile.travis
+++ b/targets/esp8266/Makefile.travis
@@ -23,22 +23,16 @@ all:
 
 # Install tools via apt.
 install-apt-get-deps:
-	sudo apt-get install -q -y gperf texinfo wget
+	sudo apt-get install -q -y wget
 
 # Fetch and build crosstool-NG with support for Xtensa.
 install-xtensa-kx106-gcc:
-	git clone https://github.com/jcmvbkbc/crosstool-NG.git ../crosstool-NG -b lx106-g++-1.21.0
-	cd ../crosstool-NG && ./bootstrap
-	cd ../crosstool-NG && ./configure --enable-local
-	$(MAKE) -C ../crosstool-NG --no-print-directory -Rr # HACK: without the command line arguments, make bails out with recursion error
-	cd ../crosstool-NG && ./ct-ng xtensa-lx106-elf
-	cd ../crosstool-NG && ./ct-ng build
+	wget https://dl.espressif.com/dl/xtensa-lx106-elf-linux64-1.22.0-88-gde0bdc1-4.8.5.tar.gz -O ../xtensa-lx106-elf-linux64-1.22.0-88-gde0bdc1-4.8.5.tar.gz
+	cd .. && tar xvfz xtensa-lx106-elf-linux64-1.22.0-88-gde0bdc1-4.8.5.tar.gz
 
 # Fetch Espressif SDK and Xtensa libraries.
 install-espressif-sdk:
-	git clone https://github.com/espressif/ESP8266_RTOS_SDK.git ../ESP8266_SDK
-	cd ../ESP8266_SDK && git checkout 2fab9e23d779cdd6e5900b8ba2b588e30d9b08c4
-	wget https://github.com/esp8266/esp8266-wiki/raw/master/libs/libhal.a -O ../ESP8266_SDK/lib/libhal.a
+	git clone https://github.com/espressif/ESP8266_RTOS_SDK.git ../ESP8266_RTOS_SDK -b v2.1.0
 
 # Perform all the necessary (JerryScript-independent) installation steps.
 install-noapt: install-xtensa-kx106-gcc install-espressif-sdk
@@ -49,4 +43,4 @@ install: install-apt-get-deps install-noapt
 
 # Build the firmware (ESP8266 with JerryScript).
 script:
-	PATH=$(CURDIR)/../crosstool-NG/builds/xtensa-lx106-elf/bin:$$PATH $(MAKE) -f ./targets/esp8266/Makefile.esp8266 BIN_PATH=build/obj-esp8266 SDK_PATH=$(CURDIR)/../ESP8266_SDK
+	PATH=$(CURDIR)/../xtensa-lx106-elf/bin:$$PATH $(MAKE) -f ./targets/esp8266/Makefile.esp8266 BIN_PATH=build/obj-esp8266 SDK_PATH=$(CURDIR)/../ESP8266_RTOS_SDK
diff --git a/targets/esp8266/docs/ESP-PREREQUISITES.md b/targets/esp8266/docs/ESP-PREREQUISITES.md
index 3399508907..de7bb4a80d 100644
--- a/targets/esp8266/docs/ESP-PREREQUISITES.md
+++ b/targets/esp8266/docs/ESP-PREREQUISITES.md
@@ -9,84 +9,58 @@ You need,
   * 5V 2A adaptor
 * USB to RS-232 Serial + RS-232 Serial to Digital or USB-to-RS232 TTL converter
 
-#### Toolchain
+#### Tools
 
-Reference [Toolchain](https://github.com/esp8266/esp8266-wiki/wiki/Toolchain) page.
+The rest of this document will assume that you download all necessary tools into
+a common directory structure. For the sake of simplicity, `$HOME/Espressif` will
+be used as the root of this structure. Feel free to deviate from this but then
+adapt all the paths accordingly.
 
-I've slightly changed the step to use SDK from Espressif official SDK
-(https://github.com/espressif/esp_iot_rtos_sdk)
-
-##### Toolchain:
-
-dependencies
 ```
-sudo apt-get install git autoconf build-essential gperf \
-    bison flex texinfo libtool libtool-bin libncurses5-dev wget \
-    gawk python-serial libexpat-dev
-sudo mkdir /opt/Espressif
-sudo chown $USER /opt/Espressif/
-
+mkdir $HOME/Espressif
 ```
 
-dependency specific to x86:
-```
-sudo apt-get install libc6-dev-i386
-```
+##### Toolchain
 
-dependency specific to x64:
-```
-sudo apt-get install libc6-dev-amd64
-```
+Download the [toolchain](https://github.com/espressif/ESP8266_RTOS_SDK/tree/v3.0.1#get-toolchain)
+pre-built for your development platform to `$HOME/Espressif` and untar it. E.g.,
+on Linux/x86-64:
 
-crosstool-NG
-```
-cd /opt/Espressif
-git clone -b lx106-g++-1.21.0 git://github.com/jcmvbkbc/crosstool-NG.git
-cd crosstool-NG
-./bootstrap && ./configure --prefix=`pwd` && make && make install
-./ct-ng xtensa-lx106-elf
-./ct-ng build
-```
-add path to environment file such as `.profile`
 ```
-PATH=$PWD/builds/xtensa-lx106-elf/bin:$PATH
+cd $HOME/Espressif
+tar xvfz xtensa-lx106-elf-linux64-1.22.0-88-gde0bdc1-4.8.5.tar.gz
 ```
 
 ##### Espressif SDK: use Espressif official
 
 ```
-cd /opt/Esprissif
-git clone https://github.com/espressif/ESP8266_RTOS_SDK.git ESP8266_RTOS_SDK.git
-ln -s ESP8266_RTOS_SDK.git ESP8266_SDK
-git checkout -b jerry 2fab9e23d779cdd6e5900b8ba2b588e30d9b08c4
+cd $HOME/Esprissif
+git clone https://github.com/espressif/ESP8266_RTOS_SDK.git -b v2.1.0
 ```
 
-This verison is tested and works properly.
-
-set two environment variables such as in .profile
-```
-export SDK_PATH=/opt/Espressif/ESP8266_SDK
-export BIN_PATH=(to output folder path)
-```
-
-##### Xtensa libraries and headers:
-```
-cd /opt/Espressif/ESP8266_SDK
-wget -O lib/libhal.a https://github.com/esp8266/esp8266-wiki/raw/master/libs/libhal.a
-```
+This version is tested and works properly.
 
 ##### ESP image tool
 ```
-cd /opt/Espressif
+cd $HOME/Espressif
 wget -O esptool_0.0.2-1_i386.deb https://github.com/esp8266/esp8266-wiki/raw/master/deb/esptool_0.0.2-1_i386.deb
 sudo dpkg -i esptool_0.0.2-1_i386.deb
 ```
 
 ##### ESP upload tool
 ```
-cd /opt/Espressif
-git clone https://github.com/themadinventor/esptool esptool-py
-sudo ln -s $PWD/esptool-py/esptool.py crosstool-NG/builds/xtensa-lx106-elf/bin/esptool.py
+cd $HOME/Espressif
+git clone https://github.com/themadinventor/esptool
+```
+
+##### Set environment variables
+
+Set environment variables, might also go in your `.profile`:
+```
+export PATH=$HOME/Espressif/xtensa-lx106-elf/bin:$PATH
+export SDK_PATH=$HOME/Espressif/ESP8266_RTOS_SDK
+export ESPTOOL_PATH=$HOME/Espressif/esptool
+export BIN_PATH=(to output folder path)
 ```
 
 #### Test writing with Blinky example
@@ -122,7 +96,7 @@ make BOOT=new APP=0 SPI_SPEED=80 SPI_MODE=QIO SPI_SIZE_MAP=2
 * write
 
 ```
-sudo /opt/Espressif/esptool-py/esptool.py \
+sudo $HOME/Espressif/esptool/esptool.py \
   --port /dev/ttyUSB0 write_flash \
   0x00000 $SDK_PATH/bin/"boot_v1.7.bin" \
   0x01000 $BIN_PATH/upgrade/user1.2048.new.5.bin \
@@ -135,7 +109,7 @@ _change `/dev/ttyUSB1` to whatever you have._
 or the old way...this works not sure this is ok.
 ```
 cd $BIN_PATH
-sudo /opt/Espressif/esptool-py/esptool.py \
+sudo $HOME/Espressif/esptool/esptool.py \
 --port /dev/ttyUSB0 write_flash \
 0x00000 eagle.flash.bin 0x40000 eagle.irom0text.bin
 ```